Quarterly report - Victoria Petroleum

Two well drilling program planned to commence October 1996 to test the onshore Carnarvon Basin, Melanie and White Opal Prospects, subject to farmout and Joint Venture approval. The Melanie Prospect is interpreted to have the potential to contain up to 60 million barrels of oil or 74 billion cubic feet of gas if hydrocarbons are present. The White Opal Prospect is interpreted to have the potential to contain up to 247 million barrels of oil or 880 billion cubic feet of gas, if hydrocarbons are present.
Upgrading of the hydrocarbon prospectivity of the Sage Prospect and offshore Carnarvon Basin permit WA 254 P with the gas shows observed in the recently drilled Helicon 1.
Seismic definition of the Gouaro Prospect, onshore New Caledonia as a major gas and oil prospect with the potential to contain up to 166 billion cubic feet of gas or 95 million barrels of oil, if hydrocarbons are present, with planned drilling in early 1997.
Acceptance of a seismic and drilling option farmin offer from Apache Energy as operator for the WA-209-P Joint Venture, which if exercised provides a 7.5% free carried interest for Victoria Petroleum N.L. through drilling of a well in early 1997.
Net oil and gas production for the March 1996 quarter of 23,194 barrels of oil equivalent equal to 244 barrels of oil equivalent per day for Kestrel Energy, Inc. and Victoria Exploration Inc., the U.S. subsidiaries of Victoria Petroleum N.L..
Planned participation in up to 10 well drilling program in next 7 months.